Decoding APEC’s Putrajaya Vision 2040

One should promote sound economic policies and structural reforms to promote innovation and improve productivity and accelerate digital transformation and narrow the digital divide. Quality growth is a vital part of sustaining a resilient and inclusive Asia-Pacific region. It will bring positive benefits to all, including women and minorities. One should give importance to human resource development and economic and technical cooperation to improve the lives of people. To maintain its unique position as the leading forum for regional economic collaboration, APEC must continuously improve its operations through good governance. The APEC Putrajaya Vision 2040 is a vision that seeks to advance the region's economic and social development with a spirit of equal partnership and mutual respect.

Objective: The principles of APEC are key to the organization’s success. They provide members with a platform for constructive discussions and agreement. The forum has been able to leverage its various advantages to promote trade, investment, and reforms in the region. The rise in average income has led to the reduction in poverty, as well as an expanding middle class. Strong trade has also contributed to the growth of the global economy. The host economy is responsible for organizing the various events during the APEC meetings. These include the Economic Leaders' meeting, the APEC Business Advisory Council, and the APEC Study Centers. The annual schedules are full of projects that are designed and implemented in a series of meetings with government leaders. These sessions are designed to tackle a broad range of issues. The Working Level APEC's committees are responsible for coordinating the activities and projects of the various divisions of the organization. These groups discuss and formulate strategies to promote trade, investment, and scientific and technical cooperation. Working groups regularly update each other on a regular basis. Senior Officials also act as a coordinating body for APEC activities. Near the end of the year these ministers will craft recommendations for APEC leaders. The APEC Economic Leaders’ Meeting is held once a year, and it is an event where the leaders of the APEC economies set their vision and identify their priorities for the coming year.

The three-month lockdown in March 2020 sent the economy into its worst recession since the early 1980s. It led to a -7.3% contraction in the third quarter. The economy grew at a steady pace in the fourth quarter of 2020. The composite Purchasing Manager Index, which measures the performance of the manufacturing and services sectors, continued to show improvement in July.

Rapid Growth Could Be Stunted: The upgrade in India's GDP forecast by the International Monetary Fund and the Asian Development Bank highlights the downside risk to the country's growth but also shows the potential recovery depends on various uncertainties. If the authorities impose partial lockdowns due to uncontrolled infections, it could have severe economic impacts. The impact of services such as tourism and travel on the economy will have a multiplier effect. However, the rural demand is expected to pick up in the next couple of months due to the monsoon season.

Benefits of APEC: The Asia-Pacific Economic Cooperation (APEC) has become a dynamic engine of growth. It is home to almost 3 billion people and accounts for approximately 61 percent of global GDP. The rise in per capita income in the Asia-Pacific has lifted millions of people out of poverty and created a growing middle class within the next three decades. The average annual tariffs in the APEC region fell from 17 percent to 5.2 percent from 1989 to 2019. The APEC platform encourages the private sector to play a vital role in the region's robust economies by contributing to the growth and development of the entire community. APEC Economic Leaders communicate with the high-level business people of the APEC Business Advisory Council. They also engage in various other initiatives designed to enhance the APEC process. The APEC Study Centre helps member economies develop and implement policies related to APEC. It coordinates research and education programs related to APEC-related issues.

Optimized Human Potential Towards A Resilient Future Of Shared Prosperity: 2020 was always going to be a significant year for APEC. It was the last year when the region's economies would finally reach the goal of free and open trade. The APEC 2020 exercise was a time for reflection. It was also a chance to step back and look at the achievements of the previous year. While the global financial crisis presented many challenges, it also offered valuable lessons. The global economic crisis highlighted the need for regional cooperation and the need for a balanced approach to economic development. This prompted APEC to explore the idea of regional resilience and inclusive economic growth. In response to the COVID-19 pandemic, various APEC fora held in 2020 were held. These sessions were focused on addressing the various challenges that the organization faced. As the APEC summit evolved from a physical meeting to a virtual one, it was able to create a vision for the future that highlighted the importance of digital technologies in navigating the region's recovery.

The APEC 2018 agenda focused on the well-being of the people, and on creating an environment that is more inclusive. The objective of the forum was to explore how economic indicators could help improve the well-being of society. Leaders and ministers committed to maintaining a free, open, and fair trade environment. They also reaffirmed their support for the rules of the World Trade Organization. During the COVID-19 crisis, the commitments were made to ensure that essential goods could be transported without interruption. These measures should be targeted and implemented in a way that is consistent with international rules. Leaders and ministers have expressed their support for the continued progress of regional economic integration. They have also recognized the importance of the Free Trade Area of the Asian-Pacific. The pandemic has highlighted the importance of the digital economy for sustaining economic growth and inclusive economic participation. This year, the APEC community focused on applying new technologies to improve digital inclusion and accelerate the digital divide. The technological revolution can provide an opportunity for all members of society to participate in the economy. This is especially true for those who have not been fully optimized. Through the use of digital economy and technologies, these target groups were identified and targeted to create sustainable and inclusive growth. Despite this, women still face various barriers in accessing and participating in the economy. Creating a digitally enabled recovery will help APEC members accelerate their work in these areas. The organization’s ability to emerge from the crisis depends on the extent to which they can use productivity-enhancing innovations. The degree to which APEC economies can support open and competitive markets for technologies such as artificial intelligence and Internet of Things will also depend on the level of openness and continuous change in society. The digital space flourished in 2020 with the emergence of new economic activity and dialogue. As APEC continues its positive trend in 2021, it will support efforts to promote digital inclusion and promote trade.

Conclusion

Creating inclusive and resilient communities will help APEC achieve its long-term recovery. They will support the region's growth and stability. In 2021, the APEC economies will establish a green recovery through the building of a better society and generating a green economy. The APEC region's economic recovery will rely on policies that can support robust growth and build long-term resilience. These policies will help minimize volatility and stimulate inclusive growth. The world will focus on the economic recovery after COVID-19. The recovery from the Asia-Pacific region has slowed down, and institutions are under pressure. The lessons of 2020 will help shape the way forward for economic recovery. Through the Putrajaya Vision 2040, APEC will work with other international organizations to develop a strategy to address the various challenges facing the world economy.

 Pic Courtesy- APEC Secretariat

(The views expressed are those of the author and do not represent Views of CESCUBE.)